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Currency & Exchange

Currency of Panama: The Balboa and the US Dollar

Panama CityLocal time

Two legal-tender currencies · fixed 1:1 parity since 1904

The Balboa and the US Dollar
ISO PAB · PANAMA
B/.
Panamanian balboa
ISO codePAB
Issuing authorityRepublic of Panama
RoleLegal tender; balboa coinage
$
US dollar
ISO codeUSD
Issuing authorityFederal Reserve System
RoleLegal tender; banknotes used in Panama
1:1
Fixed parity, balboa to US dollar
Unchanged since 1904
0
Balboa banknotes issued
US banknotes used instead
6
Balboa coin denominations
1 centésimo to 1 balboa
1904
Balboa introduced
At independence
CurrenciesBalboa + USD
ISO codePAB
BanknotesUS dollar only
CoinsBalboa
ParityFixed, 1:1

How Panama's Dual Currency System Works

Panama is unusual: two currencies, the balboa and the US dollar, both hold official legal-tender status simultaneously, but they split the roles of paper currency and coinage between them. Panama issues balboa coins but no balboa banknotes; US dollar banknotes serve as the country's paper currency instead. The two are fixed at exact 1:1 parity, a relationship that has not changed since the balboa's introduction in 1904.

Fixed parity, not a floating peg: 1 balboa has always equaled 1 US dollar, by the terms of the original 1904 monetary arrangement between Panama and the United States.

Panama does not have a traditional currency-issuing central bank; its 1972 Constitution restricts the issuance of non-convertible paper money, one reason the country relies on US dollar banknotes rather than printing its own.

Exchange Rate Context

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Reference-rate status

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Conversion guidance

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Banknotes and Coins

Banknotes

Panama issues no banknotes of its own, for either currency. All paper currency in circulation is standard US dollar banknotes.

No Panama-specific banknotes to show. US dollar banknotes ($1 to $100) circulate directly, denominated in USD.

Coins

Panama mints its own balboa coins, used interchangeably with US coins of equal value at the fixed 1:1 parity.

1¢
5¢
1/10 B
1/4 B
1/2 B
1 B
Panama national designInterchangeable with US coins

Frequently Asked Questions

What is Panama's currency?

Panama has two official currencies: the balboa (PAB), introduced in 1904, and the US dollar, which is legal tender alongside it.

Does Panama print its own banknotes?

No. Panama issues balboa coins only. All paper currency in circulation is standard US dollar banknotes.

What is the exchange rate between the balboa and the US dollar?

A fixed 1:1 parity, unchanged since the balboa's introduction in 1904. One balboa always equals one US dollar.

Does Panama have a central bank that issues currency?

Panama does not have a traditional currency-issuing central bank. Panama's 1972 Constitution restricts the issuance of non-convertible paper money.

Data note: Figures marked with * are sourced from external institutions or data providers and may change after publication. Exchange rates, payment statistics and other time-sensitive figures are provided for general reference and may not reflect current market, bank, card-network or transaction rates. DigifyWorld aims to use reliable sources and keep information current, but cannot guarantee that all data is complete, real-time or 100% accurate. Check the cited source or relevant monetary authority when making financial decisions.

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Sources & methodology

Sources for the data and definitions shown above.

View sources used for this page
  • Superintendencia de Bancos de Panamá - monetary and banking-system history
  • Banco Nacional de Panamá - 2024 financial statements, currency basis
    • Currency-system note: Panama uses the US dollar as legal tender while the balboa remains the national monetary unit at parity with the US dollar and is issued as coinage. Not financial advice.